HFHA Rent Control Tutorial

Presents:
KNOW YOUR RIGHTS
Everything You Wanted to Know about
Rent Protections, but Didn’t Know Who to
Ask

What is covered under Hoboken’s
Rent Control Ordinance vs. State
Law?
RENT CONTROL
 Yearly Increases
 Legal Base Rent
 Overcharges
 Surcharges:
Tax/Water/Capital
Improvement
 Vacancy Decontrol
STATE LAW
 Displacement
 Condo
conversion/protected
tenant status
 Lease disputes
(outside of sections
addressed in
Hoboken’s rent
control laws)
2

What properties are covered under
Hoboken’s Rent Control laws?
 Any residential property built before 1987 (including
single-family houses and condos.)
 Any residential property with less than 4 rental units
regardless of when it was built.
 Any pre-1987 condo dwelling.
 Any post-1987 building that didn’t file a rent control
exemption.*
* There is some question as to whether buildings built as rental
properties that didn’t file an exemption are covered)
3

What properties are not covered
under Hoboken’s Rent Control laws?
 Commercial/Retail establishments.
 Post-1987 buildings with more than 3 units that
filed an exemption.
 Housing authorities, HUD developments.
 Properties under a government sponsored
affordable housing program.
 Factory/Industrial properties (even if converted to
rentals).
4

What protections do tenants have
under Hoboken’s Rent Control laws?
PAY ATTENTION
THIS IS VERY
IMPORTANT
5

Unless You Stand Up For Yourself
You Have No Protections
Hoboken Administers its Ordinance Reactively
6

Q: What rights do you have if you stand up for yourself?
A: To pay only the legally allowed rent
 You have a right to be charged no more than the legal
rent allowed on your apartment.
 You have a right to get a legal rent calculation that
determines what that is.
 If you discover you have been overcharged, you have
a right to have the rent lowered.
 You have a right to a refund of up to 2 years over
payments.*
 You have the right to appeal a legal rent calculation
and to defend a legal rent calculation if it is appealed
by the landlord.
*The maximum number of years for which you can receive a refund of overpayments is 2 years.
If you received and signed a disclosure form (see sample) when you moved in, you can only file
in the first 2 years that you live in the unit. If you did not receive a disclosure form you can file
for the most recent 2 years you’ve lived in the apartment. If you vacate your apartment, you can
file for a rent refund for two years up until two years after you have vacated the unit.
8

What is a legal rent calculation &
how do you get one?
 A legal rent calculation (LRC) is a determination
made by the city’s rent leveling officer when a
tenant files for the calculation.
 When a landlord files for this determination it is
called a legal rent update.
 The cost to file: $20.
 Any determination can be appealed to the rent
leveling board by either party.
 Note: Your landlord is always notified when you
file an LRC.
9

Filing an OPRA
It’s less complicated than you might think

Or, Google “Hoboken OPRA”11

Digital copies are free of charge!
12

Then there’s that thing that sends
shudders down a landlord’s spine…
Treble
Damages
14

There are two types of surcharges
What is a Surcharge?

Tax/Water Surcharge
 What is a Tax/Water Surcharge?
 The difference between the taxes in 1988 & today with a
couple of exceptions:
o 1) If you live in a condo conversion – it is the difference
between the first tax year after the conversion & today.
o 2) If the unit was given a hardship increase and taxes
were included in the calculation – it is the difference
between the year of the hardship increase and today.
o 3) If your unit was subject to a 1-time full vacancy
decontrol for an O/O condo – it is the difference
between the year the vacancy decontrol was granted
and today.
17

Things to know about the tax/water
surcharge
 It is good for 12 months and then must come off.
 It can, however, be re-filed for each year.
 It is not part of your base rent for the purposes of
any yearly increase.
 Your landlord must notify you of the surcharge.
 Your landlord can file for a tax surcharge at any
time; it doesn’t have to be at the time you take up
residency or at the time you get your yearly
increase.
 It’s automatic if your landlord applies for it.
18

Capital Improvement Surcharge
 What is a Capital Improvement Surcharge?
 If your landlord makes a capital improvement to
your apartment and/or the building, the landlord can
file to recoup the cost from the tenants over time.
 Capital Improvements are heard at the rent leveling
board.
 You must be notified that the landlord has filed and
you should attend the hearing.
 The amount of the surcharge and the length of time
is determined by the rent leveling board.
19

Things to know about the capital
improvement surcharge
 It is not part of the base rent for the purposes of
your yearly rent increases.
 The maximum amount that it can be is 33.33% of
your monthly rent.
 The surcharge must come off after the term of the
surcharge is completed.
20

Hardship increases are not surcharges
What is a hardship increase?

Hardship Increase
If your landlord is not getting a “reasonable return” on
his/her investment s/he can apply for a permanent
increase in the base rent on your unit. The hardship
is determined by the amount of equity in the
unit/building and the interest on the mortgage on the
building/unit plus annual expenses minus the rent
paid. If the rent does not cover the landlord’s
expenses your rent will be increased by the amount
that isn’t covered plus a reasonable return.
22

Things to know about a hardship
increase
 It is permanent and it is part of your base rent.
 There is no limit on how much a hardship
increase can be.
Pretty Scary, Right?
23

What is The role of the Rent Board &
who are the Rent Board Members?
24

Who to contact about what & why
 A problem in your apartment or building relating to
your safety: The Housing Inspector – 201.420.2041
 A question about rent control: The Rent Leveling
Officer (Suzanne Hetman) – 201.420.2062
 Eviction/Displacement: An attorney (Hoboken Fair
Housing Association members can get referrals)
 For support/advice/non-legal advocacy: Hoboken
Fair Housing Association: 201.589.1892 (free to
members)
 Hoboken also has a tenant attorney on contract for
non-rent control related advise
25

Tips for renters – some odds & ends
 If your lease has a clause that says you can be evicted if
your unit is becoming a condo – cross it out – this
provision is illegal for pre-conversion tenants.
 Check to see if your lease says that the landlord can apply
surcharges at any time.
 If your building is selling & if there are 4 units or more and
your landlord tells you that you have to leave, you don’t.
 If your building sells and the new owner gives you a lease
that says, “no pets” when you already have one – tell the
owner that they don’t have a legal right to tell you to get rid
of your pet.
 If you get a notice that the there will be a hearing by the
rent leveling board about anything relating to your
unit….ATTEND.
26

Most Important Tip:
Join & Support The Hoboken Fair
Housing Association
www.hobokenfairhousing.org
hobokenfairhousing@gmail.com
201.589.1892
27

HFHA Rent Control Tutorial

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HFHA Rent Control Tutorial